"Inflation is coming down"

[RCA]

One of Biden's campaign lines is "Inflation is coming down." The media dutifully repeats it, but they have the memory of a goldfish.

Cleveland's Fed Nowcast has February's Core CPI at 3.7%. So it is actually increasing, again and not 'approaching' 2%.

View attachment 85419

It's pretty simple. I shouldn't say it is, but it is.

Government inflation numbers don't include the increase in mortgage interest rates, credit card rates or auto loan interest rates. ----> YET, this is the biggest increase in spending for most individuals.

Because Baby Boomers are retiring en masse and pulling their savings out of 401K and stocks and putting them into treasuries, capital is becoming more expensive - and that is a long term issue for the next 20 years.

So, not even Trump can fix the problem. He would make it better most likely. That's all.

 

[Charles West]

It's pretty simple. I shouldn't say it is, but it is.

Government inflation numbers don't include the increase in mortgage interest rates, credit card rates or auto loan interest rates. ----> YET, this is the biggest increase in spending for most individuals.

Because Baby Boomers are retiring en masse and pulling their savings out of 401K and stocks and putting them into treasuries, capital is becoming more expensive - and that is a long term issue for the next 20 years.

So, not even Trump can fix the problem. He would make it better most likely. That's all.

If you include borrowering costs real rates of inflation are around 7%.

 

[Fernando]

Many Americans don't pay mortgage interest rates, credit card rates, or have car loans. Those are discretionary purchases which don't affect many Americans within their budget.

 

[RCA]

Many Americans don't pay mortgage interest rates, credit card rates, or have car loans. Those are discretionary purchases which don't affect many Americans within their budget.

According to ChatGPT, about 40% of American households have mortgages, 45-50% of American households have credit card debt and 30-35% have auto loans. The total mortgage debt in the United States as of last April 2023 was $11.2 trillion, the total credit card debt $930 billion and the total auto loan debt $1.5 trillion. And also as of April 2023, the total US debt was $31.4 trillion.

 

[KHS445]

I think I'm underinsuring my replacement costs at $270/sf. Insurance recommended $400/sf. Really?
That would increase my premium by 48%. Cheapskate me will take that risk.

As I explained several months ag in a response to another of your whining posts, if you underinsure your property you will be in a co-insurance situation. In the numbers you tossed out, in the event of loss you would be responsible for your deductible plus approximately 30% of any loss. A small savings now will result in significant expense if you experience a loss. Maybe a few less trips to Hawaii and Disney and you could afford to maintain your property and your buildings would not be rejected for insurance coverage due to condition.

 

[Charles West]

I am curious how Fernando amassed such a desirable portfolio of commercial and residential rental properties while simultaneously displaying a complete lack of understanding of how any of it works.

 

[Dublin ohio]

I am curious how Fernando amassed such a desirable portfolio of commercial and residential rental properties while simultaneously displaying a complete lack of understanding of how any of it works.

Even a blind squirrel will eventually find a nut

 

[Artemis Fowl]

I am curious how Fernando amassed such a desirable portfolio of commercial and residential rental properties while simultaneously displaying a complete lack of understanding of how any of it works.

More common than you may think. Just had a call the other day with an outta-state fella that waaaay overpaid for a bunch of rental properties and had no clue how the property taxes work after a transfer of ownership. Apparently it was my fault.

Then there's investor prisoner #1234567. Asking for a bunch of info that my office has nothing to do with in his quest to amass a real estate empire. Good luck #1234567...

 

[Charles West]

Even a blind squirrel will eventually find a nut

Ah, the orange squirrel hypothesis; low probability outcome.

 

[Charles West]

The investment roadway is littered with the husks of wannabe real estate big shots. Given the depth of knowledge required to navigate the industry's dark waters it is a risky business to jump into blind.